What's Happening?
Canada has experienced a population decline for the first time since the COVID-19 pandemic, with a 0.2% drop in the third quarter of 2025. This decrease is primarily due to a reduction in non-permanent
residents, including international students and temporary foreign workers. The Canadian government, led by Prime Minister Mark Carney, has implemented measures to cap immigration, aiming to limit temporary residents to 5% of the total population by 2027. The policy shift is part of an effort to balance the country's capacity to welcome new residents with the demand for immigration. The provinces of Ontario and British Columbia have seen the most significant population decreases, while Alberta and Nunavut have experienced growth.
Why It's Important?
The population decline in Canada marks a significant shift in the country's immigration policy, which has historically been a key driver of population growth and economic development. The reduction in non-permanent residents could impact various sectors, including education, labor markets, and housing. The policy change reflects broader concerns about the sustainability of rapid population growth and its effects on social services, housing affordability, and youth unemployment. The decision to cap immigration may also influence Canada's international reputation as a welcoming destination for immigrants and could have long-term implications for the country's demographic and economic landscape.
